consumer & retail industry update - october 2015

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CONSUMER AND RETAIL

INDUSTRY UPDATE │ OCTOBER 2015

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use of house brands (i.e., Threshold by Targetor Real Simple by Bed Bath & Beyond),which retailers value because it reducesprice shopping and allows promotion of their“own” brands. Going to market under one’sown brand also introduces risk, however, asconsumers are likely to tag any issues to theretailer, not the vendor. As such, retailersare highly focused on their private labelsuppliers’ ability to deliver high-qualityproduct and guarantee compliance controlof overseas manufacturers in order to avoidpotentially costly issues with consumers. Thisdynamic disadvantages smaller players withless sophisticated supply chains.

The HW&Co. Consumer team celebrated the beginning of the fall season withseveral bellweather deals signing. While we look forward to profiling these deals in asubsequent update, we are equally pleased to note that our backlog is strong acrossour key verticals. Importantly, our pitch activity also remains robust, signaling that weand consumer investors should expect an active start to 2016.

Following up on last month’s update on our experience in the Outdoor & Lifestylespace, we now turn to some observations on the Consumer Durables and HouseholdGoods sectors. Based on our work in this market and ongoing developments at retail– including Walmart’s recent announcement of layoffs amid projected salesweakness and implied margin pressure – we expect to see consolidation activity ofhome décor vendors accelerate as key retailers continue to pare corporate staffsand increasingly require partners of scale to take on more category managementfunctions.

Key Observations

“Home” Remains a Critical Category Across Retail – Home décor represents a $70+billion category at retail and comprises up to 30% of major mass retailers’ typical floorsets. Retailers dedicate such significant shelf space to the category because it drivestraffic and offers compelling economics, with gross margins and inventory turns wellin excess of many other product offerings. Home décor also offers consistent growth,and is expected to continue expanding at ~3-4% per year.

Most Products Sold Under Private Label, Making Quality and Compliance Crucial –Industry participants estimate that retailers’ private labels represent ~65% of homedécor sales. The lack of true consumer “brands” in this category enables such prolific

HARRIS WILLIAMS & CO. CONSUMER UPDATE

1

GROUP OVERVIEW

Harris Williams & Co. is a leadingadvisor to the Consumer market. Oursignificant experience covers a broadrange of end markets, industries, andbusiness models. This particular reportfocuses on trends and metrics in thefollowing areas:

Consumer Durables

Consumer Electronics

Consumer Services

Footwear, Apparel, and Accessories

Franchise Platforms

Internet Retail

Home Furnishings

Household Goods

Infant and Juvenile Products

Jewelry, Gifts, and Collectibles

Lawn, Garden, and Pet Products and Services

Omni / Multi-Channel Brands

Outdoor and Lifestyle

Personal Care Products

Specialty and Mass Merchant Retailing

CONTACTS

John NeunerManaging [email protected]+1 (804) 915-0125

Corey [email protected]+1 (804) 932-1342

Ryan BudlongDirector [email protected] +1 (415) 217-3409

Brent [email protected]+1 (804) 915-0183

Matt ConatyVice [email protected] +1 (415) 217-3423

Chip DugginsVice [email protected] +1 (804) 932-1340

CONSUMER AND RETAIL


HW&CO.’S RECENT INDUSTRY OBSERVATIONS

7%

17%29%

6% 6%

$0

$10

$20

$30

$40

Ho

me

Dé

co

r Sa

les

($ in

bill

ion

s)

HOME DÉCOR CATEGORY SALES BY RETAILER1

1) Source: Company Annual Reports

As % of Retailer Revenue

Private Label

65%

Branded

35%

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HARRIS WILLIAMS & CO. CONSUMER UPDATE

CONSUMER AND RETAIL


HW&CO’S RECENT CONSUMER DURABLES AND HOUSEHOLD GOODS INDUSTRY OBSERVATIONS (CONTINUED)

“Going Direct” in this Category is Difficult and Value-Added Partners of Scale are Less Likely to be Displaced – Thethreat of disintermediation is the bogeyman we hear cited most often from investors looking at companies serving bigbox retailers. While this concern is legitimate for certain product categories (i.e., those with minimal designcomponents, low SKU counts, and high inventory turns), we believe it is misplaced for most areas within home décorgiven the fashion element and inherent supply chain complexities. As such, industry participants estimate that onlyapproximately 20% of the home décor category is fulfilled through direct sourcing arrangements in which the retailerworks directly with the manufacturer, bypassing the third-party vendor. Importantly, industry consultants expect that theshift toward direct sourcing has already largely occurred and large suppliers are well positioned to defend against thisthreat, due to value-added service offerings such as category management, product design, and market intelligence.

Retailers Are Under Pressure and Attempting to do More with Less – On October 14, Walmart announced that it expectsrelatively flat sales in fiscal 2016 and will invest billions of dollars over the next several years to improve the consumershopping experience and enhance its e-commerce capabilities, among other initiatives. Walmart expects significantearnings pressure in fiscal 2016 and on a related note, recently announced 450 layoffs of corporate headquarters staff.This announcement follows a similar action by Target in which the retailer cut 1,700 jobs at its headquarters andunveiled plans to cut more than 2,000 positions over the next two years.

We believe that retailers wrestling with sluggish sales growth and depleted staffs are likely to “outsource” as much aspossible while maintaining solid performance on the shelf. This dynamic supports well-entrenched players of scale andsuggests that smaller vendors may be at risk of consolidation as buyers attempt to leverage their category managers toprovide incremental services and reduce complexity.

2

RECENT CONSUMER DURABLES AND HOUSEHOLD GOODS TRANSACTIONS

M&A OUTLOOK

Scale, Scale, Scale – We were already firm believers in the power of size in the home décor industry but think that it willincreasingly be a precondition for success as retailers require more of their vendors to offer value-added services. Weacknowledge the natural concern that retailers may also seek pricing concessions as they attempt to mitigate pressureselsewhere in their business, but believe that smaller vendors will be harder hit by any such demands.

Expect to See Continued Consolidation – The home décor industry is highly fragmented, with only a handful of playersof scale and we have seen a sharp increase in the number of smaller businesses considering a sale process. We expectmany of these assets will attract more interest from the strategic consolidators, many of which are PEG-backedplatforms, as these sponsors attempt to add products and capabilities to their existing platforms and take advantage ofpotential multiple arbitrage. We further believe this dynamic will continue as smaller companies face increasingpressure from the trade.

Target Acquirer Date Description

October 2015Candles, decorative household

products, and gifts

July 2015 Blankets, throws, and pillows

July 2015 Wall art and décor

July 2015Lamp products for hospitality and

trade show applications

May 2015Decorative home furnishings,

hardwire lighting, and ceiling fans

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KEY TRADING STATISTICS (DETAIL BEGINS ON PAGE 7)

PUBLIC MARKETS OVERVIEW

PUBLIC COMPANY SECTOR PERFORMANCE (12-MONTH % CHANGE IN STOCK PRICE)

CONSUMER AND RETAIL


3

Department Chains

Apparel & Footwear Retail


Lawn, Garden, and Pet

Consumer Durables

Apparel & Footwear

Specialty & Other Retail

S&P 500

Outdoor & Lifestyle

Consumer & Retail Index

Furniture & Furnishings Retailers

Infant & Juvenile

Discount Stores & Mass Merchants

Internet Retail

Housewares

Consumer Serv ices and Retail

Franchisors

Household Products

Home & Office Furniture &

Furnishings

(20.0%) (10.0%) 0.0% 10.0% 20.0% 30.0% 40.0%

Change in Stock Price

3 mos. 12 mos. Revenue EBITDA Revenue EBITDA

Consumer Products & Services

Apparel & Footwear 24 $2,983 (11.6%) 2.6% 1.6x 11.4x 1.5x 10.1x

Consumer Durables 6 6,110 (4.8%) 1.8% 0.9x 9.6x 0.9x 7.5x

Consumer Serv ices and Retail Franchisors 8 2,863 (8.9%) 20.7% 2.2x 11.5x 1.7x 9.0x

Home & Office Furniture & Furnishings 10 1,697 (6.3%) 27.0% 0.9x 10.9x 0.9x 8.5x

Household Products 5 17,336 (1.7%) 23.7% 3.6x 15.0x 3.6x 14.0x

Housewares 10 3,384 (6.8%) 17.2% 1.4x 12.6x 1.5x 9.6x

Infant & Juvenile 12 897 (9.2%) 13.8% 0.7x 10.1x 0.6x 7.6x

Lawn, Garden, and Pet 11 1,803 (6.7%) (2.3%) 1.7x 12.7x 1.7x 10.7x

Outdoor & Lifestyle 20 922 (5.8%) 10.0% 1.4x 11.3x 1.3x 9.0x

Personal Care Products 13 3,553 (7.4%) (5.0%) 1.4x 10.5x 1.3x 10.3x

Retail

Apparel & Footwear Retail 31 1,457 (13.6%) (5.4%) 0.6x 6.3x 0.6x 5.8x

Department Chains 8 6,298 (23.1%) (12.6%) 0.6x 6.7x 0.6x 6.4x

Discount Stores & Mass Merchants 14 21,658 (18.1%) 14.0% 0.7x 10.3x 0.6x 8.9x

Furniture & Furnishings Retailers 14 1,468 (12.7%) 12.6% 0.9x 7.6x 0.9x 7.6x

Internet Retail 12 3,553 (9.5%) 15.2% 2.4x 19.6x 2.6x 13.2x

Specialty & Other Retail 15 4,506 (15.9%) 3.4% 0.8x 7.1x 0.7x 6.4x

Consumer Products & Services 119 $2,923 (6.7%) 11.9% 1.4x 11.4x 1.4x 9.3x

Retail 94 $4,029 (14.8%) 8.0% 0.7x 7.4x 0.7x 7.0x

Consumer & Retail Index 213 $3,184 (9.1%) 11.3% 1.1x 10.7x 1.1x 8.9x

SectorNumber of

Companies

Median Enterprise

Value ($ M)

Median TEV/

Forward Mulitples

Median TEV/

LTM Multiples

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CONSUMER AND RETAIL INDUSTRY STOCK PERFORMANCE

PUBLIC MARKETS OVERVIEW

4

RECENT EQUITY OFFERINGS

CONSUMER AND RETAIL


50

75

100

125

150

175

200

225

250

Oct-11 Feb-12 Jun-12 Oct-12 Feb-13 Jun-13 Oct-13 Feb-14 Jun-14 Oct-14 Feb-15 Jun-15 Oct-15

Ind

ex

Dow Jones U.S. Retail Index Dow Jones U.S. Consumer Goods Index Dow Jones U.S. Consumer Services S&P 500 Index

Close Date Filing Date Issuer Ticker

Transaction

Type

Gross Proceeds

($ M) Primary Industry

09/24/15 09/21/15 Sportsman's Warehouse Holdings, Inc. SPWH Follow-On $76.6 Specialty Stores

08/11/15 08/10/15 Norwegian Cruise Line Holdings Ltd. NCLH Follow-On 1,180.6 Hotels, Resorts and Cruise Lines

08/10/15 08/10/15 Bright Horizons Family Solutions, Inc. BFAM Follow-On 183.2 Specialized Consumer Serv ices

08/06/15 06/22/15 Planet Fitness, Inc. PLNT IPO 202.0 Leisure Facilit ies

08/05/15 08/04/15 GNC Holdings Inc GNC Convertible 250.0 Specialty Stores

07/31/15 07/31/15 Boot Barn Holdings Inc BOOT Follow-On 170.4 Apparel Retail

07/30/15 02/11/15 Xcel Brands, Inc. XELB Follow-On 15.1 Advertising

07/23/15 07/23/15 ClubCorp Holdings, Inc. MYCC Follow-On 231.7 Leisure Facilit ies

07/21/15 06/10/15 Blue Buffalo Pet Products Inc BUFF IPO 778.1 Packaged Foods and Meats

07/16/15 07/16/15 Jarden Corp JAH Follow-On 872.0 Housewares and Specialties

07/16/15 05/01/15 MCBC Holdings Inc. MCFT IPO 84.7 Leisure Products

07/15/15 06/15/15 Ollie's Bargain Outlet Holdings, Inc. OLLI IPO 164.2 General Merchandise Stores

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11.6x

12.9x 13.1x12.0x

12.1x11.9x 12.0x 11.8x 11.9x

12.2x 12.4x12.0x 11.6x

11.9x12.1x

14.7x

13.6x 13.2x

12.1x

10.8x

10.0x 10.2x10.4x

10.0x 9.5x 10.0x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

Me

dia

n T

rad

ing

Mu

ltip

les

Median LTM Trading Multiples

Consumer Products & Services Retail

5

CONSUMER AND RETAIL


M&A OVERVIEW

CONSUMER AND RETAIL M&A TRENDS

TRADING MULTIPLES AND ANNOUNCED PRIVATE EQUITY M&A ACTIVITY

ANNOUNCED CONSUMER AND RETAIL M&A

Note: Transactions based on publicly available information

97

111

72

3137

53

73

86

5752

59

71

48

28

5953

76

57

68 66

0

20

40

60

80

100

120

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

YTD

Nu

mb

er

of

Tra

nsa

cti

on

s

Consumer Private Equity Investments and Exits

Number of Investments Number of Exits

Announced Target Buyer

10/9/2015 Spinrite LP TorQuest Partners, Inc.

10/9/2015 McNett Corporation Coghlan's Ltd.

10/9/2015 Pickleball Paddles Plus Olla LLC

10/8/2015 SNUPI Technologies, Inc. Sears Holdings Corporation

10/6/2015 Pay Your Family First, LLC Empowering a Billion Women by 2020 LLC

10/6/2015 Sundance Cinemas LLC Carmike Cinemas Inc.

10/5/2015 American Furniture Manufacturing, Inc. Bank of America and Spring Creek LLC

10/5/2015 Culturata Ltd Luxury Men's Apparel Group

10/2/2015 SportsGiant, LLC Pure Hockey, LLC

10/1/2015 Northern Safety & Security, LLC Per Mar Security and Research Corporation

Last 10 Deals Announced

Aggregate Number Transaction Multiples

Value ($bn) of Deals EV / Revenue EV / EBITDA

$46.5 351 0.82x 10.7x

LTM Deal Statistics

$29 $30

$40 $38

$27 $28

$37

0

50

100

150

200

250

300

350

400

450

$0

$15

$30

$45

$60

$75

$90

2009 2010 2011 2012 2013 2014 2015

YTD

Nu

mb

er o

f Tran

sac

tion

s

Ave

rag

e T

ran

sac

tio

n V

alu

e

($ in

bill

ion

s)

Announced Consumer Transactions

Aggregate Transaction Value # of Deals

8.9x 8.4x

10.7x 10.0x 9.8x

10.8x 11.4x

0.00x

0.20x

0.40x

0.60x

0.80x

1.00x

1.20x

1.40x

0.0x

4.0x

8.0x

12.0x

16.0x

20.0x

2009 2010 2011 2012 2013 2014 2015

YTD

EV

/ LTM S

ale

s Mu

ltiple

EV

/ L

TM E

BIT

DA

Mu

ltip

leMedian Consumer Transaction Multiples

EBITDA Mult Rev Mult

98

127

77

57

77

43

66

35 39

68 7183

66

23

16

13

14

25

34

21

18 13

512

26

12

0

20

40

60

80

100

120

140

160

3Q124Q121Q132Q133Q134Q131Q142Q143Q144Q141Q152Q153Q15

Nu

mb

er

of

Tra

nsa

cti

on

s

Quarterly Consumer M&A Activity

Strategic Buyer PEG Acquirer

PAGE |

0

2

4

6

8

10

12

14

1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14 3Q14 1Q15

Loa

n V

olu

me

by

Qu

art

er

($ i

n b

illi

on

s)

Quarterly Retail Loan Volume

Institutional Pro Rata

6

CONSUMER AND RETAIL


DEBT MARKET OVERVIEW

COMMENTARY ON RECENT CONSUMER AND RETAIL DEBT TRANSACTIONS1

• FullBeauty Brands’ $1.165 B buyout deal has remained in market nearly a week past its initial deadline. The $820 Mfirst-lien term loan’s pricing has been discussed in a range of L+475-500 with a 1% floor. The $345 M second-lien termloan has unofficially been discussed at L+900 with a 1% floor and mid-80s offer price versus initial discussions of L+850at 98-98.5 at launch. The large size of the second-lien term loan has proved challenging in a crowded market, andinvestor response has been mixed. High leverage (at 6.7x, much higher than better-branded comparables likeAscena Retail) as well as the lack of asset coverage, has prompted many investors to treat the deal with caution.

• Coty and Galleria have cleared their $2 B of linked institutional term loans at L+300 with a 0.75% floor at 99.5. Themassive $6.5 B pro rata deal backs Coty’s $12.5 B merger with P&G’s fragrance and cosmetics subsidiaries. The prorata deal for Coty includes a $1.5 B A term loan and a $1.5 B revolver. The separate pro rata deal for Galleria (P&G)includes a $2 B A term loan and $1.5 B revolver. The deal will create one of the world’s largest beauty companies,with pro forma combined annual revenue of more than $10 B and will have moderate leverage of roughly 3x.

• American Apparel sought bankruptcy protection on 10/5/15, implementing a $200 M debt-for-equity swap as part ofa prearranged restructuring plan. The move comes more than four years after the company initially warned of apossible bankruptcy filing in April 2011, and it follows several lifeline loans amid ongoing negotiations over that span.

• The recapitalization of Easy Gardener Products, a portfolio company of Centre Lane Partners, was backed by a$17.5 M first-lien term loan. Easy Gardener, based in Waco, Texas, distributes trees, shrubs, and plants; fertilizer andmulch; and garden care products through retailers in the U.S., Canada, and Britain.

KEY RETAIL CREDIT STATISTICS

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

3Q091Q103Q101Q113Q111Q123Q121Q133Q131Q143Q141Q153Q15

Loa

n V

olu

me

by

Qu

art

er

($ i

n b

illi

on

s)

Quarterly Retail Loan Volume

Institutional Pro Rata

NA

L + 0

L + 100

L + 200

L + 300

L + 400

L + 500

L + 600

L + 700

2007 2008 2009 2010 2011 2012 2013 2014 1Q -

3Q15

3Q15

Ave

rag

e S

pre

ad

Ove

r LI

BO

R

Average Spread on Retail Loans

Revolving Credit / Term Loan A Weighted-Average Institutional

L + 0

L + 500

L + 1000

L + 1500

L + 2000

L + 2500

3Q05 3Q06 3Q07 3Q08 3Q09 3Q10 3Q11 3Q12 3Q13 3Q14 3Q15

Ave

rag

e S

pre

ad

Ove

r LI

BO

R

Average Secondary Spread

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

Debt/EBITDA Senior

Debt/EBITDA

EBITDA/Cash

Interest

EBITDA -

Capex/Cash

Interest

EB

ITD

A M

ult

iple

Credit Statistics

2010 2011 2012 2013 2014 LTM 9/30/15

1) Source: S&P Capital IQ LCD

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PUBLIC COMPARABLES

CONSUMER AND RETAIL


7

Price at As a % of Market Cash & Enterprise LTM P/E

($ in m illions, except per share data) Ticker 10/14/15 52-wk High Cap Debt Equiv. Value (EV) Revenue EBITDA 1 Year 3 Years Gross EBITDA Multiple Revenue EBITDA Revenue EBITDA

Consumer Products & Services

Apparel & Footwear

Coach, Inc. COH 30.77 70.1% 8,539 890 1,526 7,903 4,192 973 (12.8%) (4.2%) 69.5% 23.2% 21.2x 1.89x 8.1x 1.77x 8.2x

Columbia Sportswear Company COLM 55.83 74.7% 3,925 16 417 3,523 2,211 278 22.6% 8.8% 45.8% 12.6% 28.1x 1.59x 12.7x 1.46x 11.3x

Carter's, Inc. CRI $90.34 82.5% $4,720 $586 $244 $5,062 $2,966 $444 7.6% 9.3% 41.3% 15.0% 21.8x 1.71x 11.4x 1.60x 10.2x

Crocs, Inc. CROX 11.27 70.2% 842 9 197 653 1,117 28 (7.4%) 1.1% 49.3% 2.5% NM 0.59x 23.2x 0.59x 8.3x

Deckers Outdoor Corp. DECK 59.65 59.7% 1,949 76 169 1,857 1,819 257 11.7% 8.1% 48.3% 14.1% 13.5x 1.02x 7.2x 0.94x 6.4x

Fossil Group, Inc. FOSL 55.55 48.2% 2,675 697 250 3,122 3,424 628 0.0% 8.3% 56.2% 18.3% 8.1x 0.91x 5.0x 0.94x 6.6x

G-III Apparel Group, Ltd. GIII 62.40 84.4% 2,822 6 19 2,808 2,234 205 15.6% 20.2% 35.9% 9.2% 23.6x 1.26x 13.7x 1.11x 11.3x

Hanesbrands Inc. HBI 28.79 82.7% 11,587 2,597 315 13,869 5,654 921 15.8% 8.4% 37.9% 16.3% 33.0x 2.45x 15.1x 2.32x 13.6x

Iconix Brand Group, Inc. ICON 15.47 37.7% 747 1,479 118 2,107 391 191 0.9% 1.8% 100.0% 48.9% 6.1x 5.39x 11.0x 4.65x 9.0x

Kate Spade & Company KATE 20.94 58.6% 2,674 403 231 2,845 1,185 143 23.8% (7.2%) 60.9% 12.1% 31.8x 2.40x NM 2.16x 13.5x

NIKE, Inc. NKE 125.84 99.0% 107,240 1,208 5,484 102,964 31,033 5,011 7.7% 9.1% 46.2% 16.1% 31.9x 3.32x 20.5x 3.07x 18.5x

Oxford Industries Inc. OXM 72.94 79.9% 1,210 45 14 1,241 1,039 129 13.2% 8.7% 55.7% 12.4% 23.3x 1.19x 9.6x 1.21x 8.9x

Perry Ellis International Inc. PERY 21.90 77.7% 345 130 38 437 909 42 1.1% (1.6%) 34.2% 4.6% NM 0.48x 10.5x 0.46x 7.4x

PVH Corp. PVH 99.88 77.3% 8,244 3,382 467 11,160 8,045 953 (2.5%) 10.6% 52.5% 11.8% 16.9x 1.39x 11.7x 1.36x 10.1x

Ralph Lauren Corporation RL 118.73 63.3% 10,169 693 1,151 9,711 7,530 1,243 0.3% 2.8% 57.2% 16.5% 17.4x 1.29x 7.8x 1.26x 8.2x

Steven Madden, Ltd. SHOO 35.63 79.7% 2,251 0 100 2,150 1,382 178 3.3% 6.4% 34.8% 12.9% 21.2x 1.56x 12.1x 1.44x 10.5x

Skechers U.S.A., Inc. SKX 128.18 78.3% 6,533 112 514 6,131 2,822 360 33.8% 25.2% 45.3% 12.8% 31.4x 2.17x 17.0x 1.78x 12.6x

Gildan Activewear Inc. TSX: GIL 30.62 86.9% 7,444 593 45 7,992 2,407 365 3.7% 8.8% 23.5% 15.1% 32.5x 3.32x 21.9x 2.95x 13.5x

Tumi Holdings, Inc. TUMI 17.45 68.5% 1,185 0 73 1,112 543 117 10.9% 14.6% 58.5% 21.5% 19.6x 2.05x 9.5x 1.90x 9.4x

Under Armour, Inc. UA 97.28 91.9% 20,980 717 171 21,525 3,422 442 28.8% 28.2% 48.8% 12.9% NM 6.29x 48.7x 5.03x 36.4x

V.F. Corporation VFC 70.31 90.3% 29,927 2,584 660 31,851 12,450 2,105 5.8% 6.3% 48.7% 16.9% 29.1x 2.56x 15.1x 2.42x 13.6x

Vera Bradley, Inc. VRA 12.45 52.9% 473 0 76 397 500 71 (3.3%) 0.3% 54.1% 14.3% 18.1x 0.79x 5.6x 0.81x 5.8x

Weyco Group Inc. WEYS 27.26 87.1% 296 18 18 296 325 36 8.4% 4.4% 38.4% 11.1% 15.4x 0.91x 8.2x NA NA

Wolverine World Wide Inc. WWW 20.32 57.7% 2,095 833 221 2,707 2,782 315 3.1% 25.6% 39.3% 11.3% 15.6x 0.97x 8.6x 0.96x 8.5x

Mean 73.3% $9,953 $711 $522 $10,143 $4,183 $643 8.0% 8.5% 49.3% 15.1% 21.9x 1.98x 13.7x 1.84x 11.4x

Median 77.5% $2,748 $494 $209 $2,983 $2,320 $296 6.7% 8.3% 48.5% 13.5% 21.2x 1.57x 11.4x 1.46x 10.1x

Last Twelve Months (LTM) EV / LTM EV / 2015ERevenue Growth LTM Margins

PAGE |

PUBLIC COMPARABLES

CONSUMER AND RETAIL


8



Consumer Durables

Arcelik AS ARCLK 5.40 98.4% 3,651 1,889 393 5,147 4,799 469 (14.4%) (4.3%) 31.4% 9.8% 13.5x 1.07x 11.0x 1.06x 9.7x

Electrolux AB ELUX B 28.90 83.2% 8,305 1,649 1,017 8,937 14,526 1,000 (10.1%) (2.3%) 19.6% 6.9% 23.8x 0.62x 8.9x 0.56x 7.5x

iRobot Corporation IRBT 30.48 80.0% 910 0 224 686 570 67 12.8% 7.4% 47.0% 11.8% 25.6x 1.21x 10.2x 1.01x 7.0x

Middleby Corp. MIDD 114.04 91.0% 6,538 575 39 7,074 1,682 373 9.6% 20.9% 39.3% 22.2% 31.9x 4.21x 19.0x 3.32x 16.1x

Haier Electronics Group Co., Ltd. SEHK: 1169 1.95 58.3% 5,442 200 1,595 4,046 10,568 494 (0.8%) 8.8% 15.2% 4.7% 12.9x 0.38x 8.2x 0.39x 7.4x

Whirlpool Corp. WHR 151.51 69.8% 11,881 4,757 691 15,947 20,881 2,026 11.0% 4.3% 17.3% 9.7% 17.8x 0.76x 7.9x 0.73x 6.6x

Mean 80.1% $6,121 $1,512 $660 $6,973 $8,838 $738 1.4% 5.8% 28.3% 10.8% 20.9x 1.37x 10.9x 1.18x 9.1x

Median 81.6% $5,990 $1,112 $542 $6,110 $7,684 $482 4.4% 5.8% 25.5% 9.7% 20.8x 0.92x 9.6x 0.87x 7.5x

Consumer Services and Retail Franchisors

GNC Holdings Inc. GNC 40.02 77.4% 3,401 1,340 101 4,640 2,612 476 (0.9%) 4.5% 37.3% 18.2% 14.4x 1.78x 9.7x 1.70x 8.8x

H&R Block, Inc. HRB 34.64 94.1% 9,573 506 1,706 8,373 3,083 948 1.7% 2.2% 50.3% 30.8% 19.3x 2.72x 8.8x 2.67x 8.5x

Planet Fitness, Inc. PLNT 16.75 81.0% 613 505 32 1,086 315 100 97.5% NA 51.8% 31.8% 14.7x 3.44x 10.8x 3.36x 9.0x

Regis Corp. RGS 12.46 69.6% 659 120 212 566 1,837 86 (2.9%) (4.7%) 33.8% 4.7% NM 0.31x 6.6x 0.31x 6.0x

Realogy Holdings Corp. RLGY 38.04 76.5% 5,578 4,338 359 9,557 5,522 728 3.8% 9.0% 48.2% 13.2% 30.2x 1.73x 13.1x 1.61x 11.3x

Serv iceMaster Global Holdings, Inc. SERV 33.62 87.4% 4,545 2,846 384 7,007 2,529 576 7.0% NA 47.5% 22.8% 39.8x 2.77x 12.2x 2.65x 11.0x

Steiner Leisure Ltd. STNR 64.25 98.8% 824 109 48 885 871 73 1.1% 4.6% 21.9% 8.4% NM 1.02x 12.2x 0.98x 10.8x

Winmark Corp. WINA 99.25 91.7% 410 71 1 479 69 37 16.9% 9.7% 88.7% 54.1% 22.2x 6.98x 12.9x NA NA

Mean 84.6% $3,200 $1,229 $355 $4,074 $2,105 $378 15.5% 4.2% 47.4% 23.0% 23.4x 2.59x 10.8x 1.90x 9.4x

Median 84.2% $2,113 $505 $157 $2,863 $2,183 $288 2.8% 4.5% 47.9% 20.5% 20.7x 2.25x 11.5x 1.70x 9.0x

Home & Office Furniture & Furnishings

The Dixie Group, Inc. DXYN 9.04 78.6% 144 136 0 280 419 17 10.9% 16.6% 24.6% 4.1% NM 0.67x 16.3x 0.62x NA

HNI Corp. HNI 45.89 79.5% 2,035 304 39 2,301 2,353 212 13.8% 6.8% 35.9% 9.0% 28.5x 0.98x 10.9x 0.93x 8.5x

Hooker Furniture Corp. HOFT 25.16 92.2% 271 0 44 228 249 25 6.9% 5.8% 26.5% 9.9% 18.2x 0.91x 9.2x 0.88x NA

Kimball International, Inc. KBAL 10.34 55.3% 388 0 35 354 601 43 10.5% (19.3%) 31.4% 7.1% 36.2x 0.59x 8.3x NA NA

Knoll, Inc. KNL 22.99 88.2% 1,122 274 10 1,385 1,090 122 15.6% 7.4% 36.2% 11.2% 17.7x 1.27x 11.4x 1.21x 9.3x

Leggett & Platt, Incorporated LEG 42.93 83.7% 5,874 1,033 275 6,632 3,914 481 9.7% 2.1% 22.0% 12.3% 25.0x 1.69x 13.8x 1.61x 11.0x

La-Z-Boy Incorporated LZB 27.97 95.3% 1,414 1 99 1,316 1,440 130 4.4% 4.7% 35.9% 9.0% 20.7x 0.91x 10.1x 0.85x 8.5x

Herman Miller Inc. MLHR $30.07 93.0% $1,799 $268 $58 $2,010 $2,198 $245 14.3% 8.6% 37.6% 11.2% 17.1x 0.91x NM 0.87x 7.6x

Steelcase Inc. SCS 19.52 95.5% 2,384 281 207 2,458 3,074 270 0.0% 2.8% 31.7% 8.8% 27.1x 0.80x 9.1x 0.77x 7.3x

Tempur Sealy International Inc. TPX 73.49 91.4% 4,549 1,576 35 6,089 3,077 339 8.7% 28.1% 38.6% 11.0% 35.7x 1.98x 18.0x 1.87x 12.7x

Mean 85.3% $1,998 $387 $80 $2,305 $1,842 $188 9.5% 6.4% 32.1% 9.4% 25.1x 1.07x 11.9x 1.07x 9.3x

Median 89.8% $1,607 $271 $41 $1,697 $1,819 $171 10.1% 6.3% 33.8% 9.5% 25.0x 0.91x 10.9x 0.88x 8.5x

Household Products

Church & Dwight Co. Inc. CHD 86.96 95.8% 11,387 1,074 203 12,258 3,367 768 4.6% 6.1% 44.2% 22.8% 29.1x 3.64x 16.0x 3.57x 15.4x

Colgate-Palmolive Co. CL $65.75 91.9% $59,184 $6,683 $1,308 $64,559 $16,736 $4,550 (4.0%) (0.6%) 58.6% 27.2% 26.4x 3.86x 14.2x 3.92x 14.2x

The Clorox Company CLX 120.25 99.0% 15,527 2,191 382 17,336 5,655 1,158 2.6% 1.1% 43.6% 20.5% 26.3x 3.07x 15.0x 3.03x 14.0x

Prestige Brands Holdings, Inc. PBH 46.63 90.1% 2,459 1,515 22 3,952 761 259 26.7% 15.6% 57.7% 34.1% 28.1x 5.19x 15.2x 4.97x 14.0x

The Procter & Gamble Company PG 74.21 79.0% 201,343 30,350 11,612 220,081 76,279 18,007 (5.3%) (2.4%) 49.9% 23.6% 24.3x 2.89x 12.2x 3.18x 12.6x

Mean 91.2% $57,980 $8,363 $2,705 $63,637 $20,560 $4,948 4.9% 4.0% 50.8% 25.6% 26.8x 3.73x 14.5x 3.73x 14.0x

Median 91.9% $15,527 $2,191 $382 $17,336 $5,655 $1,158 2.6% 1.1% 49.9% 23.6% 26.4x 3.64x 15.0x 3.57x 14.0x

Last Twelve Months (LTM) LTM Margins EV / LTM EV / 2015ERevenue Growth

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Housewares

Fiskars Oyj Abp FIS1V 20.25 79.4% 1,658 404 1,060 1,002 964 91 (9.2%) 0.8% 39.3% 9.4% 1.7x 1.04x 11.0x 0.71x 7.4x

Helen of Troy Limited HELE 99.49 95.2% 2,796 479 19 3,255 1,528 215 15.3% 7.8% 41.7% 14.1% 20.5x 2.13x 15.1x 2.09x 13.8x

Jarden Corp. JAH 51.08 89.5% 10,782 5,026 730 15,077 8,317 844 7.7% 7.5% 31.8% 10.1% 44.8x 1.81x 17.9x 1.64x 11.4x

Libbey Inc. LBY 33.05 78.6% 722 452 31 1,143 852 112 2.1% 1.2% 23.6% 13.2% 14.7x 1.34x 10.2x 1.31x 8.6x

Lifetime Brands, Inc. LCUT 14.94 82.3% 209 131 5 336 591 39 9.3% 8.2% 36.6% 6.5% NM 0.57x 8.7x 0.55x NA

Nacco Industries Inc. NC 48.97 76.7% 340 179 19 500 909 10 (1.0%) 3.8% 20.5% 1.1% NM 0.55x 49.6x NA NA

Newell Rubbermaid Inc. NWL 42.33 95.1% 11,336 2,881 239 13,978 5,835 965 3.3% 0.7% 38.7% 16.5% 30.7x 2.40x 14.5x 2.33x 13.4x

SEB SA SK 96.59 89.9% 4,745 1,011 510 5,247 5,057 558 (11.1%) (0.4%) 11.5% 11.0% 20.9x 1.04x 9.4x 0.95x 8.4x

Spectrum Brands Holdings, Inc. SPB 92.81 87.1% 5,524 4,346 107 9,763 4,561 685 3.9% 12.0% 35.6% 15.0% 29.5x 2.14x 14.2x 1.92x 10.6x

Tupperware Brands Corporation TUP 54.38 74.6% 2,713 873 74 3,512 2,439 404 (8.2%) (1.6%) 66.5% 16.6% 13.4x 1.44x 8.7x 1.54x 8.6x

Mean 84.8% $4,082 $1,578 $279 $5,381 $3,105 $392 1.2% 4.0% 34.6% 11.4% 22.0x 1.45x 15.9x 1.45x 10.3x

Median 84.7% $2,754 $676 $91 $3,384 $1,984 $310 2.7% 2.5% 36.1% 12.1% 20.7x 1.39x 12.6x 1.54x 9.6x

Infant & Juvenile

Carter's, Inc. CRI 90.34 82.5% 4,720 586 244 5,062 2,966 444 7.6% 9.3% 41.3% 15.0% 21.8x 1.71x 11.4x 1.60x 10.2x

Crown Crafts, Inc. CRWS 8.34 94.9% 83 0 8 75 88 11 9.6% 1.1% 27.3% 12.9% 14.1x 0.85x 6.6x 0.81x 6.1x

Dorel Industries Inc. DII.B 23.15 71.4% 750 684 51 1,383 2,709 146 6.5% 4.2% 21.9% 5.4% NM 0.51x 9.5x 0.49x 7.3x

Hasbro Inc. HAS 73.67 87.3% 9,202 1,728 891 10,038 4,280 805 2.9% 0.9% 52.8% 18.8% 22.4x 2.35x 12.5x 2.21x 11.1x

JAKKS Pacific, Inc. JAKK 8.64 84.0% 166 215 110 270 849 65 29.5% 7.0% 29.4% 7.7% 8.5x 0.32x 4.1x 0.37x 4.7x

Mattel, Inc. MAT 22.52 70.6% 7,626 2,100 300 9,425 5,926 943 (6.4%) (1.7%) 49.6% 15.9% 18.8x 1.59x 10.0x 1.65x 11.0x

Mothercare plc MTC 3.46 75.2% 590 0 47 543 1,063 54 (11.9%) (6.5%) 15.3% 5.1% NM 0.51x 10.1x 0.49x 7.7x

Newell Rubbermaid Inc. NWL 42.33 95.1% 11,336 2,881 239 13,978 5,835 965 3.3% 0.7% 38.7% 16.5% 30.7x 2.40x 14.5x 2.33x 13.4x

The Children's Place, Inc. PLCE 57.97 82.9% 1,178 30 205 1,002 1,738 135 (1.0%) (0.1%) 35.8% 7.8% 22.2x 0.58x 7.4x 0.58x 5.6x

Goodbaby International Holdings Limited SEHK: 1086 0.47 92.5% 526 262 103 685 923 37 50.6% 18.7% 26.0% 4.0% NM 0.74x 18.7x 0.69x 9.5x

Summer Infant, Inc. SUMR 1.76 48.2% 32 58 1 89 207 3 4.1% (5.3%) 31.1% 1.4% NM 0.43x 30.7x 0.40x 6.7x

TOMY Company, Ltd. TSE: 7867 5.27 73.8% 448 638 295 791 1,236 87 (16.6%) (19.0%) 35.2% 7.1% NM 0.64x 9.1x 0.56x 7.4x

Mean 79.9% $3,055 $765 $208 $3,612 $2,318 $308 6.5% 0.8% 33.7% 9.8% 19.8x 1.05x 12.0x 1.02x 8.4x

Median 82.7% $670 $424 $158 $897 $1,487 $111 3.7% 0.8% 33.2% 7.7% 21.8x 0.69x 10.1x 0.64x 7.6x

Lawn, Garden, and Pet

DuluxGroup Limited ASX:DLX 3.96 79.2% 1,512 322 31 1,803 1,256 167 (15.4%) 5.4% 47.6% 13.3% 22.2x 1.44x 10.8x 1.45x 10.7x

Blue Buffalo Pet Products, Inc. BUFF 19.38 67.3% 3,801 389 180 4,010 976 191 18.2% NA 39.4% 19.6% 37.4x 4.11x 21.0x 3.72x 18.3x

Central Garden & Pet Company CENT $16.73 95.4% $856 $400 $44 $1,213 $1,639 $136 2.5% (0.8%) 29.8% 8.3% 25.8x 0.74x 8.9x 0.72x 9.0x

Freshpet, Inc. FRPT $10.00 38.6% $335 $0 $24 $312 $102 $2 38.1% NA 48.6% 1.5% NM 3.04x 199.1x 2.31x 15.0x

Oil-Dri Corp. of America ODC 27.38 80.1% 198 19 22 194 261 27 (1.8%) 2.8% 23.0% 10.4% 17.2x 0.74x 7.1x NA NA

The Scotts Miracle-Gro Company SMG 64.86 93.6% 3,974 1,064 80 4,958 2,988 383 5.9% 2.1% 35.3% 12.8% 24.0x 1.66x 13.0x 1.60x 10.0x

Spectrum Brands Holdings, Inc. SPB 92.81 87.1% 5,524 4,346 107 9,763 4,561 685 3.9% 12.0% 35.6% 15.0% 29.5x 2.14x 14.2x 1.92x 10.6x

Maabarot Products Ltd. TASE:MABR 11.63 91.3% 114 4 43 74 94 6 (10.2%) 2.5% 40.6% 6.2% NM 0.79x 12.7x NA NA

Echo Trading Co., Ltd. TSE:7427 5.33 90.7% 32 41 31 43 615 1 (15.2%) (13.8%) 12.8% 0.2% 19.9x 0.07x 40.6x NA NA

Unicharm Corporation TSE:8113 18.46 64.7% 11,040 228 964 10,304 5,961 994 2.4% 4.7% 44.2% 16.7% 32.2x 1.73x 10.4x 1.55x 10.7x

The Toro Company TTC 72.73 97.6% 3,986 387 110 4,262 2,324 342 8.6% 5.4% 34.9% 14.7% 21.9x 1.83x 12.5x 1.71x 10.7x

Mean 80.5% $2,852 $655 $149 $3,358 $1,889 $267 3.4% 2.2% 35.6% 10.8% 25.6x 1.66x 31.8x 1.87x 11.9x

Median 87.1% $1,512 $322 $44 $1,803 $1,256 $167 2.5% 2.8% 35.6% 12.8% 24.0x 1.66x 12.7x 1.65x 10.7x

Last Twelve Months (LTM) Revenue Growth LTM Margins EV / LTM EV / 2015E

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Outdoor & Lifestyle

Arctic Cat Inc. ACAT $24.37 61.4% $316 $31 $20 $327 $689 $13 (8.5%) 3.5% 16.1% 1.9% NM 0.47x 24.4x 0.47x 8.3x

Brunswick Corporation BC 50.13 88.5% 4,609 452 611 4,450 3,998 468 10.5% 3.5% 26.8% 11.7% 21.3x 1.11x 9.5x 1.04x 7.9x

Black Diamond, Inc. BDE 5.39 50.1% 176 22 44 154 200 5 12.7% 8.4% 39.0% 2.5% NM 0.77x NM 0.86x 15.0x

Columbia Sportswear Company COLM 55.83 74.7% 3,925 16 417 3,523 2,211 278 22.6% 8.8% 45.8% 12.6% 28.1x 1.59x 12.7x 1.46x 11.3x

Callaway Golf Co. ELY 8.80 86.3% 692 153 27 818 818 33 (8.0%) (2.9%) 40.5% 4.0% NM 1.00x NM 0.94x 15.0x

Escalade Inc. ESCA 16.41 82.1% 232 13 3 242 149 21 10.3% 2.7% 29.8% 14.3% 15.5x 1.62x 11.3x 1.51x 10.6x

Fox Factory Holding Corp FOXF 17.46 97.2% 645 69 6 708 329 50 13.5% 24.4% 30.3% 15.3% 31.7x 2.15x 14.0x 1.91x 10.5x

GoPro, Inc. GPRO 28.09 32.1% 3,732 0 517 3,215 1,697 277 64.1% NA 46.3% 16.3% 25.2x 1.89x 11.6x 1.58x 8.1x

Amer Sports Corp. HLSE: AMEAS 25.96 85.8% 3,046 731 122 3,654 2,660 262 (9.4%) 2.3% 44.4% 9.8% 41.2x 1.37x 14.0x 1.21x 11.5x

Rapala VMC Corp. HLSE: RAP1V 5.70 85.1% 219 145 17 347 316 29 (15.8%) (4.0%) 50.5% 9.3% 21.4x 1.10x 11.8x 1.03x 9.0x

Harley-Davidson, Inc. HOG 54.39 77.2% 11,168 6,227 881 16,514 5,999 1,381 (4.2%) 1.5% 37.1% 23.0% 14.6x 2.75x 12.0x 2.92x 11.1x

Johnson Outdoors Inc. JOUT 21.86 61.9% 218 8 54 171 430 25 2.8% 1.2% 40.0% 5.8% 24.6x 0.40x 6.9x 0.39x NA

Malibu Boats, Inc. MBUU 14.91 61.8% 267 79 8 337 229 38 19.7% NA 26.8% 16.5% 16.0x 1.47x 8.9x 1.32x 6.8x

Marine Products Corp. MPX 6.95 77.3% 266 0 18 249 186 17 4.5% 13.6% 20.1% 8.9% 22.8x 1.34x NM 1.21x 12.4x

Nautilus Inc. NLS 16.34 71.2% 516 0 87 428 310 44 27.1% 18.1% 52.2% 14.3% 19.9x 1.38x 9.7x 1.25x 8.8x

Polaris Industries Inc. PII 119.72 75.1% 7,919 403 119 8,204 4,804 890 16.1% 17.4% 29.9% 18.5% 17.5x 1.71x 9.2x 1.57x 8.0x

Sturm, Ruger & Co. Inc. RGR 58.21 88.1% 1,089 0 61 1,027 499 113 (26.3%) 7.1% 29.5% 22.6% 45.3x 2.06x 9.1x 1.81x 8.0x

Smith & Wesson Holding Corporation SWHC 18.56 96.6% 1,009 177 55 1,131 568 133 (3.4%) 7.6% 36.8% 23.4% 20.6x 1.99x 8.5x 1.79x 7.6x

Shimano Inc. TSE: 7309 150.01 92.3% 13,907 89 1,433 12,563 3,053 783 5.1% 0.8% 40.0% 25.6% 24.7x 4.11x 16.0x 3.96x 15.2x

Vista Outdoor Inc. VSTO 42.53 86.3% 2,687 346 184 2,849 2,032 289 (2.2%) NA 25.8% 14.2% 37.4x 1.40x 9.9x 1.26x 8.9x

Mean 76.6% $2,832 $448 $234 $3,045 $1,559 $257 6.6% 6.7% 35.4% 13.5% 25.2x 1.59x 11.7x 1.47x 10.2x

Median 79.7% $850 $74 $58 $922 $629 $82 4.8% 3.5% 36.9% 14.2% 22.8x 1.44x 11.3x 1.29x 9.0x


Avon Products Inc. AVP 3.90 33.0% 1,698 2,585 729 3,553 8,097 691 (13.5%) (9.4%) 61.2% 8.5% NM 0.44x 5.1x 0.51x 6.0x

The Estée Lauder Companies Inc. EL 83.13 90.7% 30,814 1,637 1,525 30,926 10,780 2,016 (1.7%) 3.5% 80.5% 18.7% 29.5x 2.87x 15.3x 2.75x 14.0x

Herbalife Ltd. HLF 55.66 89.8% 5,147 1,683 750 6,081 4,658 590 (7.8%) 7.2% 51.5% 12.7% 17.2x 1.31x 10.3x 1.33x 8.2x

Kimberly-Clark Corporation KMB 114.71 96.4% 41,786 7,671 603 48,854 19,218 4,375 2.1% (3.0%) 34.9% 22.8% NM 2.54x 11.2x 2.59x 11.8x

Medifast Inc. MED 28.45 83.1% 342 0 65 277 277 40 (2.8%) (5.5%) 73.2% 14.6% 19.3x 1.00x 6.9x 1.00x 7.0x

Nu Skin Enterprises Inc. NUS 36.75 58.5% 2,123 252 304 2,071 2,352 401 (28.4%) 5.9% 81.7% 17.0% 11.3x 0.88x 5.2x 0.88x 5.6x

The Procter & Gamble Company PG 74.21 79.0% 201,343 30,350 11,612 220,081 76,279 18,007 (5.3%) (2.4%) 49.9% 23.6% 24.3x 2.89x 12.2x 3.18x 12.6x

Elizabeth Arden, Inc. RDEN 12.59 58.1% 375 364 60 679 971 (28) (16.6%) (7.8%) 42.2% NM NM 0.70x NM 0.67x 11.8x

Revlon, Inc. REV 30.50 73.2% 1,599 1,848 199 3,248 1,894 307 5.7% 11.0% 66.2% 16.2% 38.3x 1.71x 10.6x NA NA

Sally Beauty Holdings Inc. SBH 23.38 66.3% 3,677 1,810 239 5,248 3,814 594 2.7% 3.1% 49.6% 15.6% 15.3x 1.38x 8.8x 1.33x 8.5x

ULTA Salon, Cosmetics & Fragrance, Inc. ULTA 159.26 90.1% 10,183 0 475 9,708 3,538 604 20.6% 21.9% 35.1% 17.1% 35.7x 2.74x 16.1x 2.36x 13.7x

USANA Health Sciences Inc. USNA 122.99 69.5% 1,575 0 151 1,424 872 139 19.4% 13.0% 82.7% 16.0% 18.7x 1.63x 10.2x 1.49x 8.8x

All for One Steeb AG XTRA:A1OS $67.27 94.8% $335 $42 $41 $337 $265 $30 (8.3%) 16.1% 24.6% 11.1% 23.7x 1.27x 11.4x 1.23x 11.9x

Mean 75.6% $23,154 $3,711 $1,289 $25,576 $10,232 $2,136 (2.6%) 4.1% 56.4% 16.2% 23.3x 1.64x 10.3x 1.61x 10.0x

Median 79.0% $2,123 $1,637 $304 $3,553 $3,538 $590 (2.8%) 3.5% 51.5% 16.1% 21.5x 1.38x 10.5x 1.33x 10.3x

LTM MarginsLast Twelve Months (LTM) EV / 2015ERevenue Growth EV / LTM

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Retail

Apparel & Footwear Retail

American Eagle Outfitters, Inc. AEO 15.63 84.5% 3,055 0 327 2,727 3,423 427 5.1% 1.3% 44.5% 12.5% 21.5x 0.80x 6.4x 0.78x 5.6x

Abercrombie & Fitch Co. ANF $20.13 56.7% $1,389 $340 $408 $1,321 $3,558 $346 (12.0%) (6.0%) 61.0% 9.7% NM 0.37x 3.8x 0.38x 4.2x

Aéropostale, Inc. ARO 0.58 13.2% 46 143 87 102 1,692 (79) (14.4%) (10.8%) 30.4% NM NM 0.06x NM 0.07x NM

Ascena Retail Group Inc. ASNA 12.85 73.1% 2,507 116 254 2,369 4,803 382 0.3% 12.7% 55.6% 8.0% NM 0.49x 6.2x 0.32x 3.5x

The Buckle, Inc. BKE 35.52 63.3% 1,724 0 142 1,582 1,153 281 1.8% 1.9% 49.7% 24.4% 10.9x 1.37x 5.6x 1.36x 5.5x

Cabela's Incorporated CAB 43.46 72.2% 3,056 3,999 61 6,994 3,824 453 8.4% 9.5% 43.4% 11.9% 15.6x 1.83x 15.4x 1.64x 13.7x

Caleres, Inc. CAL 30.81 91.1% 1,347 239 129 1,457 2,585 177 2.2% 1.0% 40.6% 6.8% 15.8x 0.56x 8.2x 0.55x 7.2x

The Cato Corporation CATO 36.13 80.5% 992 0 284 708 991 113 4.4% 2.1% 39.0% 11.4% 16.4x 0.71x 6.3x 0.69x NA

Chico's FAS Inc. CHS 14.63 77.1% 2,038 97 157 1,978 2,696 303 3.0% 4.0% 53.9% 11.2% NM 0.73x 6.5x 0.73x 6.2x

Citi Trends, Inc. CTRN 23.78 82.9% 370 0 79 291 687 40 8.0% 1.8% 38.4% 5.8% 25.8x 0.42x 7.2x 0.40x 5.9x

Destination Maternity Corporation DEST 8.84 52.8% 123 34 2 155 494 (54) (5.7%) (3.1%) 39.6% NM NM 0.31x NM NA NA

DSW Inc. DSW 25.16 63.6% 2,233 0 292 1,941 2,593 336 8.4% 7.0% 38.3% 13.0% 13.6x 0.75x 5.8x 0.70x 5.7x

Destination XL Group, Inc. DXLG 6.01 89.7% 295 64 6 353 432 31 9.2% 2.9% 47.0% 7.2% NM 0.82x 11.4x 0.77x 12.2x

Express Inc. EXPR 18.17 87.7% 1,539 70 156 1,454 2,261 259 4.6% 2.3% 42.5% 11.4% 17.0x 0.64x 5.6x 0.61x 5.2x

Finish Line Inc. FINL 18.73 64.5% 840 0 100 740 1,874 165 6.7% 9.1% 39.0% 8.8% 10.6x 0.40x 4.5x 0.38x 4.1x

Foot Locker, Inc. FL 68.52 88.7% 9,550 132 970 8,712 7,253 1,023 4.8% 7.5% 42.2% 14.1% 17.3x 1.20x 8.5x 1.15x 7.8x

Genesco Inc. GCO 60.15 72.6% 1,431 113 49 1,495 2,932 246 8.5% 5.7% 48.7% 8.4% 14.6x 0.51x 6.1x 0.49x 5.5x

Guess? Inc. GES 22.47 95.8% 1,927 7 471 1,463 2,312 236 (8.0%) (4.2%) 36.3% 10.2% 19.9x 0.63x 6.2x 0.67x 7.2x

The Gap, Inc. GPS 26.64 60.7% 10,836 1,348 1,043 11,141 16,235 2,402 (0.4%) 2.8% 37.5% 14.8% 10.1x 0.69x 4.6x 0.68x 4.8x

L Brands, Inc. LB 95.41 97.9% 27,705 4,759 830 31,634 11,665 2,459 5.5% 4.4% 47.4% 21.1% 24.7x 2.71x 12.9x 2.56x 12.0x

Lululemon Athletica Inc. LULU 51.54 73.6% 7,244 0 541 6,703 1,898 432 13.3% 17.5% 49.5% 22.7% 27.5x 3.53x 15.5x 3.09x 14.2x

The Men's Wearhouse, Inc. MW 42.03 63.5% 2,032 1,656 73 3,616 3,624 354 37.1% 14.8% 42.9% 9.8% NM 1.00x 10.2x 0.98x 7.1x

New York & Company Inc. NWY 2.43 74.2% 157 14 60 111 937 20 0.3% (0.3%) 37.7% 2.2% NM 0.12x 5.4x 0.12x 3.1x

The Children's Place, Inc. PLCE 57.97 82.9% 1,178 30 205 1,002 1,738 135 (1.0%) (0.1%) 35.8% 7.8% 22.2x 0.58x 7.4x 0.58x 5.6x

Pacific Sunwear of California Inc. PSUN 0.29 9.5% 20 101 14 108 806 1 0.2% 1.8% 43.4% 0.1% NM 0.13x NM 0.14x 30.4x

Ross Stores Inc. ROST 48.50 85.6% 19,792 396 631 19,556 11,538 1,831 9.4% 8.1% 32.3% 15.9% 20.4x 1.69x 10.7x 1.59x 10.0x

Shoe Carnival Inc. SCVL 22.24 74.1% 455 0 40 416 963 70 7.7% 6.3% 29.4% 7.3% 15.3x 0.43x 5.9x 0.41x 5.6x

Stein Mart Inc. SMRT 8.72 52.4% 398 170 12 557 1,356 81 6.1% 4.6% 29.2% 6.0% 13.9x 0.41x 6.9x 0.39x 6.2x

Stage Stores Inc. SSI 10.31 44.3% 330 90 24 396 1,639 127 2.7% 1.7% 27.3% 7.7% 10.5x 0.24x 3.1x 0.24x 2.8x

Urban Outfitters Inc. URBN 30.11 63.7% 3,732 115 266 3,581 3,432 491 8.0% 9.9% 41.9% 14.3% 17.6x 1.04x 7.3x 0.97x 6.4x

Zumiez, Inc. ZUMZ 17.57 43.2% 469 5 81 392 829 103 9.5% 11.2% 35.0% 12.4% 13.1x 0.47x 3.8x 0.47x 4.8x

Mean 68.9% $3,510 $453 $251 $3,711 $3,297 $425 4.3% 4.1% 41.3% 10.9% 17.0x 0.83x 7.4x 0.80x 7.6x

Median 73.1% $1,431 $90 $142 $1,457 $2,261 $246 4.8% 2.9% 40.6% 10.2% 16.1x 0.63x 6.3x 0.64x 5.8x

Department Chains

Bon-Ton Stores Inc. BONT $3.62 36.9% $85 $978 $21 $1,042 $2,820 $143 0.7% (1.4%) 37.0% 5.1% NM 0.37x 7.3x 0.36x 7.1x

Dillard's Inc. DDS 88.73 61.5% 3,440 830 175 4,095 6,843 801 2.3% 1.5% 36.6% 11.7% 11.2x 0.60x 5.1x 0.60x 5.2x

J. C. Penney Company, Inc. JCP 9.43 93.5% 2,881 5,309 973 7,217 12,389 499 1.9% (7.4%) 35.8% 4.0% NM 0.58x 14.5x 0.56x 9.4x

Nordstrom Inc. JWN 66.87 80.4% 12,587 3,141 423 15,305 14,099 1,881 9.1% 7.4% 37.3% 13.3% 17.7x 1.09x 8.1x 1.02x 7.8x

Kohl's Corp. KSS 45.01 56.5% 8,754 5,046 934 12,866 19,101 2,569 1.3% 0.5% 36.4% 13.4% 11.8x 0.67x 5.0x 0.66x 4.9x

Macy's, Inc. M 49.77 67.6% 16,473 7,264 843 22,894 27,895 3,759 (0.5%) 1.3% 39.9% 13.5% 12.2x 0.82x 6.1x 0.82x 5.8x

Stage Stores Inc. SSI 10.31 44.3% 330 90 24 396 1,639 127 2.7% 1.7% 27.3% 7.7% 10.5x 0.24x 3.1x 0.24x 2.8x

Hudson's Bay Company TSX: HBC 18.95 83.4% 3,451 1,973 45 5,380 6,651 401 3.5% 19.2% 40.7% 6.0% 40.4x 0.81x 13.4x 0.52x 7.1x

Mean 65.5% $6,000 $3,079 $430 $8,649 $11,430 $1,272 2.6% 2.8% 36.4% 9.4% 17.3x 0.65x 7.8x 0.60x 6.3x

Median 64.6% $3,446 $2,557 $299 $6,298 $9,616 $650 2.1% 1.4% 36.8% 9.7% 12.0x 0.64x 6.7x 0.58x 6.4x


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PUBLIC COMPARABLES

CONSUMER AND RETAIL


12



Discount Stores & Mass Merchants

Big Lots Inc. BIG 47.18 91.2% 2,339 223 57 2,504 5,191 349 0.7% (0.8%) 39.7% 6.7% 17.9x 0.48x 7.2x 0.48x 6.4x

Costco Wholesale Corporation COST 149.84 95.5% 65,541 6,147 6,419 65,269 116,199 4,659 3.2% 5.4% 13.0% 4.0% 27.9x 0.56x 14.0x 0.53x 12.8x

CVS Health Corporation CVS 100.45 88.4% 112,303 13,145 1,404 124,044 145,577 10,920 10.2% 7.7% 17.6% 7.5% 24.3x 0.85x 11.4x 0.78x 10.0x

Dollar General Corporation DG 65.11 80.0% 19,185 2,863 181 21,868 19,678 2,229 8.6% 8.0% 30.9% 11.3% 17.4x 1.11x 9.8x 1.02x 8.8x

Dollar Tree, Inc. DLTR 61.38 72.9% 14,407 8,349 1,307 21,449 9,759 1,329 19.7% 11.9% 39.5% 13.6% 41.1x 2.20x 16.1x 1.18x 10.4x

Macy's, Inc. FDO 49.60 64.1% 0 7,264 843 6,421 27,895 3,759 (0.5%) 1.3% 39.9% 13.5% NA 0.23x 1.7x 0.23x 1.6x

Gordmans Stores, Inc. GMAN 3.69 41.4% 73 61 10 124 649 19 0.8% 3.4% 41.5% 2.9% NM 0.19x 6.6x 0.18x 5.6x

PriceSmart Inc. PSMT 80.80 78.0% 2,439 103 150 2,392 2,726 180 9.9% 11.3% 16.1% 6.6% 27.6x 0.88x 13.3x 0.80x 12.1x

Rite Aid Corporation RAD 6.05 63.9% 6,140 7,444 153 13,432 27,853 1,301 7.4% 2.1% 27.5% 4.7% 3.1x 0.48x 10.3x 0.41x 9.0x

Target Corp. TGT 76.20 88.8% 47,886 12,740 2,767 57,859 73,550 7,353 3.5% 1.0% 29.7% 10.0% 16.7x 0.79x 7.9x 0.77x 7.8x

The TJX Companies, Inc. TJX 71.77 93.3% 48,400 1,624 2,238 47,785 29,899 4,277 6.0% 7.2% 28.8% 14.3% 21.9x 1.60x 11.2x 1.51x 10.8x

Tuesday Morning Corporation TUES 5.80 25.3% 256 0 45 211 906 25 4.8% 3.7% 36.0% 2.7% 24.5x 0.23x NM 0.23x 7.4x

Walgreens Boots Alliance, Inc. WBA 84.03 86.4% 91,785 16,247 4,533 103,499 93,979 6,395 24.8% 9.0% 26.7% 6.8% 21.6x 1.10x 16.2x 0.88x 11.5x

Wal-Mart Stores Inc. WMT 60.03 66.0% 192,453 49,691 5,751 236,393 485,621 35,267 1.1% 1.8% 24.9% 7.3% 12.5x 0.49x 6.7x 0.48x 6.8x

Mean 73.9% $43,086 $8,993 $1,847 $50,232 $74,249 $5,576 7.2% 5.2% 29.4% 8.0% 21.4x 0.80x 10.2x 0.68x 8.6x

Median 79.0% $16,796 $6,706 $1,075 $21,658 $27,874 $2,994 5.4% 4.6% 29.2% 7.0% 21.7x 0.67x 10.3x 0.65x 8.9x

Furniture & Furnishings Retailers

Aaron's, Inc. AAN $38.02 93.2% $2,759 $495 $91 $3,163 $3,068 $430 31.2% 12.9% 51.1% 14.0% 22.8x 1.03x 7.4x 0.94x 8.3x

Bed Bath & Beyond Inc. BBBY 57.35 72.0% 9,726 1,500 696 10,530 12,014 1,757 2.9% 6.7% 38.6% 14.6% 11.1x 0.88x 6.0x 0.85x 6.1x

Conns Inc. CONN 22.29 50.7% 814 812 7 1,619 1,558 96 14.5% 23.8% 27.3% 6.2% 18.4x 1.04x 16.8x 0.91x 7.7x

Ethan Allen Interiors Inc. ETH 26.72 81.9% 759 78 78 758 755 85 1.1% 1.1% 54.5% 11.3% 21.0x 1.00x 8.9x 0.96x 7.6x

hhgregg, Inc. HGG 5.55 67.5% 154 0 10 144 2,098 (8) (8.2%) (6.3%) 28.6% NM NM 0.07x NM 0.07x 11.9x

Haverty Furniture Companies Inc. HVT 22.51 86.6% 511 54 73 491 791 72 6.0% 7.4% 53.5% 9.1% NM 0.62x 6.9x 0.58x 6.2x

Kirkland's Inc. KIRK 23.82 80.7% 412 0 49 363 529 48 11.7% 6.8% 48.8% 9.1% 25.0x 0.69x 7.5x 0.61x 6.2x

La-Z-Boy Incorporated LZB 27.97 95.3% 1,414 1 99 1,316 1,440 130 4.4% 4.7% 35.9% 9.0% 20.7x 0.91x 10.1x 0.85x 8.5x

Pier 1 Imports, Inc. PIR 7.43 42.4% 650 266 41 875 1,890 166 3.9% 6.0% 38.9% 8.8% 10.9x 0.46x 5.3x 0.46x 5.5x

Rent-A-Center, Inc. RCII 24.32 64.9% 1,290 956 71 2,176 3,254 286 4.6% 2.4% 67.0% 8.8% 12.7x 0.67x 7.6x 0.64x 6.4x

Restoration Hardware Holdings, Inc. RH 96.73 91.3% 3,889 719 455 4,153 1,997 230 19.7% 24.0% 37.2% 11.5% 41.0x 2.08x 18.0x 1.77x 13.6x

Select Comfort Corporation SCSS 23.95 67.0% 1,231 0 88 1,143 1,271 166 26.3% 14.1% 61.3% 13.1% 15.6x 0.90x 6.9x 0.85x 6.5x

The Sherwin-Williams Company SHW 242.51 82.4% 22,605 2,285 75 24,815 11,302 1,578 5.5% 6.9% 47.2% 14.0% 24.7x 2.20x 15.7x 2.10x 13.5x

Williams-Sonoma Inc. WSM 74.80 83.7% 6,788 150 120 6,818 4,843 657 6.9% 8.2% 38.2% 13.6% 22.6x 1.41x 10.4x 1.32x 9.5x

Mean 75.7% $3,786 $523 $140 $4,169 $3,344 $407 9.3% 8.5% 44.9% 11.0% 20.5x 1.00x 9.8x 0.92x 8.4x

Median 81.3% $1,261 $208 $77 $1,468 $1,943 $166 5.8% 6.8% 43.0% 11.3% 20.9x 0.91x 7.6x 0.85x 7.6x

EV / 2015ELast Twelve Months (LTM) Revenue Growth LTM Margins EV / LTM

PAGE |

PUBLIC COMPARABLES

CONSUMER AND RETAIL


13



Internet Retail

Amazon.com, Inc. AMZN 544.83 93.8% 254,822 17,953 14,001 258,774 95,808 5,726 17.2% 20.8% 31.3% 6.0% NM 2.70x 45.2x 2.22x 21.2x

Alibaba Group Holding Limited BABA $68.54 57.1% $172,202 $8,504 $18,995 $161,711 $13,012 $4,259 40.7% NA 67.8% 32.7% 25.4x 12.43x 38.0x 10.02x 19.9x

Cimpress N.V. CMPR 80.14 87.3% 2,601 653 110 3,143 1,494 203 17.6% 13.6% 61.9% 13.6% 29.4x 2.10x NM 1.87x 12.6x

eBay Inc. EBAY 24.00 36.0% 29,231 7,622 10,554 26,299 18,351 5,167 11.1% 12.1% 67.4% 28.2% 10.0x 1.43x 5.1x 2.99x 7.5x

Mercadolibre, Inc. MELI 90.88 59.2% 4,013 288 338 3,963 612 189 21.2% 21.5% 77.2% 30.9% 45.4x 6.48x NM 5.96x 21.1x

Blue Nile Inc. NILE 31.33 83.5% 361 1 40 321 483 16 6.2% 10.2% 18.5% 3.4% 37.0x 0.67x 19.6x 0.63x 13.2x

Overstock.com Inc. OSTK 16.74 61.4% 422 2 105 319 1,610 24 17.3% 15.1% 18.7% 1.5% NM 0.20x 13.1x 0.17x 6.6x

The Priceline Group Inc. PCLN 1,311.08 95.5% 66,474 5,400 3,188 68,686 8,798 3,266 16.1% 22.3% 91.4% 37.1% 29.2x 7.81x 21.0x 6.90x 17.6x

Shutterfly, Inc. SFLY 39.05 79.5% 1,415 376 190 1,601 969 90 16.8% 22.2% 50.0% 9.2% NM 1.65x 17.9x 1.46x 8.1x

Stamps.com Inc. STMP 72.83 82.0% 1,201 2 84 1,119 172 42 31.2% 16.6% 78.3% 24.5% NM 6.50x 26.6x 5.13x 15.8x

Rakuten, Inc. TSE: 4755 13.24 65.8% 18,852 5,988 6,731 18,110 5,347 1,243 (2.3%) 2.0% 17.0% 23.2% 27.9x 3.39x 14.6x 2.92x 12.9x

Wayfair Inc. W 39.57 69.6% 3,316 0 288 3,028 1,661 (125) 50.1% NA 24.1% NM NM 1.82x NM 1.33x NM

Mean 72.6% $46,243 $3,899 $4,552 $45,590 $12,360 $1,675 20.3% 15.6% 50.3% 19.1% 29.2x 3.93x 22.3x 3.47x 14.2x

Median 74.6% $3,665 $514 $313 $3,553 $1,635 $196 17.2% 15.8% 56.0% 23.2% 29.2x 2.40x 19.6x 2.57x 13.2x

Specialty & Other Retail

Best Buy Co., Inc. BBY 34.83 82.9% 12,001 1,609 3,495 10,115 40,327 2,187 3.1% (1.6%) 22.7% 5.4% 14.7x 0.25x 4.6x 0.25x 4.5x

Big 5 Sporting Goods Corp. BGFV 10.36 67.0% 230 75 7 298 999 50 3.1% 3.3% 31.9% 5.0% 15.2x 0.30x 6.0x 0.29x 5.7x

Barnes & Noble, Inc. BKS $12.66 43.7% $966 $0 $37 $928 $6,051 $299 (3.8%) (5.5%) 30.6% 4.9% NM 0.15x NM 0.22x 4.2x

Dick's Sporting Goods Inc. DKS 47.08 78.0% 5,582 6 123 5,465 7,075 761 9.3% 8.7% 30.6% 10.8% 15.6x 0.77x 7.2x 0.71x 6.4x

The Home Depot, Inc. HD 120.27 97.1% 154,439 19,375 4,936 168,878 85,398 12,693 5.9% 6.0% 34.8% 14.9% 23.5x 1.98x 13.3x 1.88x 11.8x

Hibbett Sports, Inc. HIBB 35.40 63.5% 844 3 85 762 927 130 5.1% 6.2% 35.5% 14.0% 12.5x 0.82x 5.9x 0.77x 5.6x

Marinemax Inc. HZO 14.66 51.1% 375 137 47 465 726 33 19.0% 12.7% 24.7% 4.5% 17.9x 0.64x 14.2x 0.57x 9.7x

Lumber Liquidators Holdings, Inc. LL 16.68 23.8% 452 20 45 427 1,046 48 2.3% 12.0% 34.9% 4.6% NM 0.41x 8.9x 0.40x 65.9x

Lowe's Companies Inc. LOW 72.04 94.5% 66,654 11,359 1,089 76,924 57,700 6,713 5.6% 4.3% 34.8% 11.6% 24.4x 1.33x 11.5x 1.28x 10.4x

Movado Group, Inc. MOV 26.61 67.5% 617 40 188 469 588 81 0.3% 6.5% 52.6% 13.7% 13.8x 0.80x 5.8x 0.78x 5.4x

Office Depot, Inc. ODP 7.00 71.6% 3,837 1,536 867 4,506 15,219 642 6.4% 10.8% 23.8% 4.2% NM 0.30x 7.0x 0.31x 5.4x

Staples, Inc. SPLS 12.55 64.7% 8,077 1,108 611 8,574 21,816 1,388 (4.6%) (3.5%) 26.1% 6.4% NM 0.39x 6.2x 0.40x 6.1x

Tiffany & Co. TIF 78.81 71.3% 10,162 1,075 771 10,466 4,198 1,021 (0.4%) 4.2% 59.9% 24.3% 23.0x 2.49x 10.3x 2.36x 9.4x

Tractor Supply Company TSCO 84.15 87.4% 11,429 9 56 11,382 6,048 758 12.2% 10.1% 34.3% 12.5% 29.0x 1.88x 15.0x 1.71x 13.3x

Vitamin Shoppe, Inc. VSI 32.15 65.6% 948 18 3 963 1,258 140 10.1% 11.1% 41.8% 11.1% 17.1x 0.77x 6.9x 0.73x 6.7x

Mean 68.6% $18,441 $2,425 $824 $20,041 $16,625 $1,796 4.9% 5.7% 34.6% 9.9% 18.8x 0.89x 8.8x 0.84x 11.4x

Median 67.5% $3,837 $75 $123 $4,506 $6,048 $642 5.1% 6.2% 34.3% 10.8% 17.1x 0.77x 7.1x 0.71x 6.4x


PAGE |

M&A TRANSACTIONS

RECENT NORTH AMERICAN CONSUMER M&A

CONSUMER AND RETAIL


Private Equity

Announced Target Seller Buyer Involvement

10/9/2015 Spinrite LP - TorQuest Partners, Inc. P

10/9/2015 McNett Corporation - Coghlan's Ltd.

10/9/2015 Pickleball Paddles Plus - Olla LLC

10/8/2015 SNUPI Technologies, Inc. Madrona Venture, WRF Capital, and others Sears Holdings Corporation P

10/6/2015 Pay Your Family First, LLC - Empowering a Billion Women by 2020 LLC

10/6/2015 Sundance Cinemas LLC - Carmike Cinemas Inc.

10/5/2015 American Furniture Manufacturing, Inc. Compass Diversified Holdings Bank of America and Spring Creek LLC P

10/5/2015 Culturata Ltd - Luxury Men's Apparel Group

10/2/2015 SportsGiant, LLC - Pure Hockey, LLC

10/1/2015 Northern Safety & Security, LLC - Per Mar Security and Research Corporation

10/1/2015 Continental Fragrances, Ltd. Beringea LLC; CID Capital, Inc. High Ridge Brands Co. P

10/1/2015 Shoes For Crews, LLC AEA Investors LP CCMP Capital Advisors, LLC P

10/1/2015 Moots Cycles, Inc. - -

10/1/2015 Wise Chem Safe Pest Control Coleman Exterminating, LLC Arrow Exterminators, Inc.

9/30/2015 Goalsetter Systems, Inc. Co-Line Welding Inc. Escalade Sports, Inc.

9/30/2015 Master Z's Dart and Pool Supply - Legends of the Field LLC

9/29/2015 Hearing Aid Express, Inc. - Ear Level Communications, Inc.

9/28/2015 Sabi Inc., Sabi Space Sabi Inc. Urbio LLC

9/24/2015 Mikon International Inc - G.E.T. Enterprises, LLC

9/23/2015 Riopel Marine Inc. - Matica Enterprises Inc.

9/22/2015 Life Highlights Digital Media, LLC - Forever, Inc.

9/21/2015 Nautic Global Group, Inc., Brands Nautic Global Group, Inc. Bennington Marine, LLC

9/21/2015 J. Mendel Inc. The Gores Group LLC Stallion Inc. P

9/18/2015 Gilchrist & Soames, Inc. Swander Pace Capital Sysco Guest Supply, LLC P

9/16/2015 Incase Designs Corp. Swander Pace Capital Incipio Technologies, Inc. P

9/9/2015 Arthur Court, Inc. - Vagabond Group, Inc.

9/8/2015 Joe's Jeans Inc. Joe's Jeans Inc. Sequential Brands Group, Inc.

9/8/2015 Robert Graham Designs, LLC Tengram Capital Partners, LLC Joe's Jeans Inc. P

9/8/2015 CHART Metalworks, Inc. - Sea Bags, Inc.

9/7/2015 Sun & Skin Care Research, LLC CapitalSouth Growth Fund; Source Capital, LLC - P

9/2/2015 California Scents, Inc. - American Covers Inc.

9/1/2015 Industrial Blades Division Edgewell Personal Care Company AccuTec Blades, Inc.

9/1/2015 ACE Theatrical Group, LLC - The Ambassador Theatre Group Limited

8/31/2015 Backyard Leisure Holdings, LLC Baird Capital Partners - P

8/31/2015 Hollywood Fashion Tape, Inc. - American International Industries

8/30/2015 Blyth, Inc. Ropart Asset Management Funds and others The Carlyle Group LP P

8/27/2015 3rd Ave. Studio - Centennial Brands Inc.

8/26/2015 Vintage Blades LLC - The Grooming Network

8/25/2015 Glen Plaid LLC - Collegiate Originals Apparel, Inc.

8/25/2015 Hartcraft, Ltd. - Plano Synergy Holdings, Inc.

8/24/2015 Cyberswim, Inc. - Alphagility, LLC

8/23/2015 Belk Inc. John M. Belk Educational Endowment and others Sycamore Partners P

8/21/2015 Bob Mickler's, Inc. - - P

8/19/2015 The Beachcombers International Inc. - KB Howell Enterprises, LLC

8/18/2015 FULLBEAUTY Brands, Inc. Charlesbank Capital & Webster Capital Apax Partners LLP P

8/16/2015 zulily, Inc. MeriTech Capital Partners and others QVC, Inc. P

8/14/2015 Canwest Bedding Ltd. - SSH Bedding Canada Co.

8/11/2015 Zirtual Inc. Mayfield Fund, VegasTechFund, others Startups.co P

8/11/2015 The Paradies Shops, Inc. Freeman Spogli & Co. Incorporated Lagardère Travel Retail SAS P

8/10/2015 Of a Kind, Inc. Collaborative Fund Bed Bath & Beyond Inc. P

8/10/2015 Marvins Building Materials Inc. - Central Network Retail Group, LLC

8/6/2015 Lemon Tree, K.K. - Left Hand Studios LLC

8/5/2015 Avery Outdoors, Inc. - Banded Holdings Inc.

8/4/2015 Shoe Sensation, Inc. Consumer Growth and Palisade Capital J.W. Childs Associates, L.P. P

8/3/2015 Latham Pool Products, Inc. Littlejohn & Co. LLC Wynnchurch Capital, Ltd. P

8/2/2015 SC Pool & Spa Works & others VivoPools, Inc. Poolwerx USA LLC

8/1/2015 Country Home Products, Inc. - Generac Holdings Inc.

7/31/2015 Infinity Technology & Entertainment Inc. - Vernon Communications Cooperative

7/31/2015 Coyne International Enterprises Corp. - NXT Capital, LLC P

7/29/2015 Onix Sports, Inc. - Escalade Sports, Inc.

7/29/2015 F2Z USA Corp. - F2Z Entertainment Inc.

7/28/2015 Kanata Blanket Company - Pro Towels

7/27/2015 Good Vibrations Shoes Inc. - Vindai Corporation

7/23/2015 No Limit Archery, LLC - Plano Synergy Holdings, Inc.

7/22/2015 Deal Genius, LLC - Hilco Merchant Resources LLC

7/22/2015 Creery Custom, Inc. - Ledbury Inc.

7/21/2015 Globox Rentals, Inc. - Alps Innovations Group, Inc.

7/20/2015 Jimmy Styks, LLC - Vista Outdoor Inc.

7/20/2015 Minno Inc Western Technology, Felicis Ventures, others eBay Inc. P

7/19/2015 Loomworks Apparel, Inc. - Delta Galil USA Inc.

7/17/2015 Ben Sherman Limited and Clothing LLC Oxford Industries Inc. Marquee Brands LLC

7/17/2015 Duffy's Brew LLC - -

7/15/2015 Comark Inc. KarpReilly LLC Pacific West Commercial Corporation P

7/15/2015 KidKraft, L.P. - MidOcean Partners P

7/13/2015 Starplex Operating LP - AMC Entertainment Holdings, Inc.

7/13/2015 Chatters Canada Limited - ONCAP P

14

PAGE |

M&A TRANSACTIONS

15

RECENT NORTH AMERICAN CONSUMER M&A (CONTINUED)

CONSUMER AND RETAIL


Private Equity


7/13/2015 Qponix LLC - Meredith Corporation

7/13/2015 Councill Company, LLC - Kindel Furniture Company Inc.

7/11/2015 WNA, Inc. Olympus Partners Jarden Corp. P

7/9/2015 Sports One Inc. - Hi-Tech Pharmaceuticals, Inc.

7/9/2015 Knowledge Universe Education LLC Knowledge Universe Holdings, LLC - P

7/9/2015 Puremco Fun & Games, Inc. - University Games Corporation

7/8/2015 43 Beauty Brands The Procter & Gamble Company Coty Inc.

7/8/2015 SCIFIT Systems, Inc. - Brunswick Corporation

7/8/2015 Morton's Ace Hardware - Sunshine Ace Hardware, Inc.

7/6/2015 Artissimo Designs Inc. Huron Capital Partners, LLC Excelsior Capital Partners P

7/3/2015 Santa Cruz Bicycles, Inc. - Pon Holdings B.V.

7/2/2015 Spot It!/Dobble Game - Asmodée Editions SAS

7/2/2015 Murad, Inc. - Unilever United States, Inc.

7/1/2015 Backcountry.com, Inc. Liberty Interactive Corporation TSG Consumer Partners P

7/1/2015 Advanced Beauty Systems, Inc. - PDC Brands

7/1/2015 Crappie Pro - Gene Larew Lures, LLC

6/30/2015 Kelley's Termite And Pest Control, Inc. - Bug Out Service Inc

6/30/2015 Northwest Carpets Inc. - Lexmark Carpet Mills, Inc.

6/29/2015 Gaspard & Sons Ltd. Ironbridge Equity Partners Limited American Achievement Corporation P

6/26/2015 The Wigglebutt Inn, Inc. - Pet Paradise-INN, LLC

6/26/2015 Kadel's Auto Body, LLC Midwest Mezzanine Funds; KCB Management ABRA Auto Body & Glass LP P

6/25/2015 Foundation Partners Group, LLC Sterling Partners Access Microfinance Holding AG P

6/24/2015 Alarm Associates, Inc. - LOUD Security Systems, Inc.

6/24/2015 Player's Bench Corporation - Total Hockey Inc.

6/24/2015 Dermalogica, Inc. - Unilever plc

6/24/2015 By George - McGuire Moorman Hospitality, LLC

6/22/2015 11 Main, Inc. Alibaba Group Holding Limited OpenSky Corp.

6/18/2015 New York Kids Club LLC - New Harbor Capital Management LLC P

6/17/2015 Valley Sporting Goods, Inc. - S&S Promotional Group, Inc.

6/16/2015 Zanella Ltd. - Tengram Capital Partners, LLC P

6/16/2015 Altantic Service & Supply Inc. - Style Crest, Inc.

6/15/2015 Carolina Cutlery Service, Inc. - Cozzini Bros, Inc.

6/15/2015 Pure Energy, Inc. - Livewire, LLC

6/13/2015 American Spa Company Inc - Elements Group Ltd.

6/12/2015 JS Technologies, Inc. - Avalanche International, Corp.

6/12/2015 Service Brands International, LLC - The Dwyer Group, Inc.

6/11/2015 Vanity Fair Brands, LP Fruit of the Loom, Inc. Perceva Capital P

6/11/2015 VKGS, LLC Contrarian Cap Mgmt & Nogales Investors Mgmt Global Leveraged Cap Mgmt P

6/11/2015 Nebraska Book (Retail Store Div.) Nebraska Book Company, Inc. Follett Corporation

6/11/2015 Fineline Industries, Inc. - Nautique Boat Company, Inc.

6/10/2015 Bravo Sports Corporation Swander Pace Capital One Industries Corp. P

6/10/2015 Cardinal Industries, Inc. - Spin Master Ltd.

6/9/2015 Sequel Natural Ltd. VMG Partners The WhiteWave Foods Company P

6/9/2015 Red Earth Trading Co. LLC - Nisolo, LLC

6/8/2015 Aurora Casket Company, Inc. Kohlberg & Company, L.L.C. The York Group, Inc. P

6/8/2015 Rocket Games Rights to PIE FACE Rocket Games Hasbro Inc.

6/3/2015 Too Faced Cosmetics, Inc. Weston Presidio General Atlantic LLC P

6/2/2015 Consorcio Latinoamericano - PPG Industries, Inc.

6/1/2015 Jrco Inc. - Great Northern Equipment Distributing, Inc.

6/1/2015 Jack Guttman, Inc. - Decopac, Inc.

6/1/2015 Field Logic, Inc. - FeraDyne Outdoors, LLC

5/29/2015 Sheplers, Inc. BBH Capital Partners; Gryphon Investors Boot Barn, Inc. P

5/29/2015 Ink4Allus.com - Gorilla Stationers, LLC

5/29/2015 Dollar Tree, Inc., 330 Stores Dollar Tree, Inc. Sycamore Partners P

5/29/2015 Family Dollar Stores Inc., 330 Family Dollar Stores Family Dollar Stores Inc. Sycamore Partners P

5/28/2015 Mialisia & Co., LLC - Youngevity Essential Life Sciences

5/28/2015 Quaker Pet Group, LLC - Worldwise, Inc.

5/27/2015 Geeknet, Inc. (NasdaqGM:GKNT) Impala Asset Management, LLC GameStop Corp. P

5/27/2015 Orchard Brands Corporation American Capital, Ltd. Bluestem Brands, Inc. P

5/26/2015 Soundcast Systems, Inc. - Hancock Park Associates

5/22/2015 I Gotcha Golf, LLC - Dynamic Brands, Inc.

5/21/2015 Recreation Creations, LLC. Worth Investment Group, LLC Kidstuff Playsystems, Inc. P

5/21/2015 Frederic Fekkai & Co., LLC The Procter & Gamble Company SA Designer Parfums Limited; LUXE Brands, Inc.

5/20/2015 Billy Goat Industries, Inc. - Briggs & Stratton Corporation

5/20/2015 Reborn Products Co., Inc. - American Accessories

5/20/2015 LightHeaded Beds, LLC - Lifetime Products, Inc.

5/19/2015 Groupe Archambault inc. Quebecor Media Inc. Librairie Renaud-Bray Inc.

5/19/2015 Hildebrandt Learning Centers, LLC - Bright Horizons Family Solutions, Inc.

5/18/2015 PlayPower Holdings Inc. Apollo Global Management, LLC Littlejohn & Co. LLC P

5/18/2015 Protection 1, Inc. GTCR, LLC Apollo Global Management, LLC P

5/17/2015 ANN INC. (NYSE:ANN) Golden Gate Capital and others Ascena Retail Group Inc. P

5/15/2015 APW Holdings, LLC - InMotion Entertainment Group, LLC

5/14/2015 Contour, Inc. Curious Office Partners World Wide Licenses Ltd. P

5/14/2015 The Connaught Group, Ltd. Tom James Company, Inc. Royal Spirit International Limited

5/13/2015 Tivoli Audio, LLC Summit Partners LLP Serruya Private Equity P

5/13/2015 Bourbon & Boots, Inc. Gravity Ventures and others XCelerate Capital P

PAGE |

Andy WarczakVice [email protected]+1 (612) 359-2714

HW&CO. CONSUMER TEAM

M&A TRANSACTIONS

CONSUMER AND RETAIL


RECENT NORTH AMERICAN CONSUMER M&A (CONTINUED)

Private Equity


5/13/2015 Dimensions 100 Inc. - Webster Capital P

5/12/2015 Outdoor Solutions, Inc. NCH Corporation FEMO Group Holdings LP

5/8/2015 GZMOE - Gorilla Stationers, LLC

5/6/2015 Kate Somerville Skin Care, LLC JH Partners LLC Unilever plc (LSE:ULVR) P

5/6/2015 Huck Glove Groopco Ltd. - Ontario Glove and Safety Inc.

5/2/2015 AbbeyPost LaunchCapital LLC; 500 Startups Sourceeasy, Inc. P

5/1/2015 Lexol Brands, LLC Summit Industries, Inc. American Covers, Inc.

4/30/2015 Carleton Uniforms Inc. - Unisync Group Limited

4/30/2015 The Buck Bomb, Inc. - Hunter's Specialties, Inc.

4/30/2015 Implus Corporation Trilantic Capital Management LLC Berkshire Partners LLC P

4/30/2015 Mountain Khakis LLC Remington Outdoor Company, Inc. Kanders & Company, Inc.

4/29/2015 DragonTech Manufacturing Company - Affinity Specialty Apparel, Inc.

4/29/2015 Reed & Barton Corporation - Lenox Corporation

4/27/2015 Classic Awards Inc. - American Quarter Horse Foundation

4/27/2015 Woodstream Corporation Brockway Moran & Partners, Inc.; CHS Capital Vestar Capital Partners, Inc. P

4/24/2015 ColorPre Inc. - Corporate Specialties LLC

4/23/2015 Nine West Holdings, Inc., Jones New York Brand Nine West Holdings, Inc. Authentic Brands Group LLC

4/23/2015 Mountain Rug Mills, Inc. - CAP Carpet, Inc.

4/20/2015 Cirque du Soleil Inc. Créations Méandres, Inc. TPG Capital, Fosun Industrial Holdings Limited P

4/20/2015 Fletcher's Appliance, Inc. - Baron's Major Brands, LLC

4/17/2015 Driven Brands, Inc. Harvest Partners, LP Roark Capital Group P

4/17/2015 Fit & Fresh - CID Capital, Inc. P

4/16/2015 Robert Fisher Company, Inc. - Bergio International, Inc. (OTCPK:BRGO)

4/16/2015 Urnex Brands, Inc. - Cortec Group P

4/15/2015 Pet Supermarket, Inc. - Roark Capital Group P

4/14/2015 Dent Wizard International Corporation H.I.G. Capital, LLC Gridiron Capital, LLC P

4/14/2015 E. Masin Furniture Company, Inc. - Selden's Interior Furnishings, Inc.

4/13/2015 Frederick's of Hollywood Group Inc. HRG Group, Inc., and others Authentic Brands Group LLC

4/13/2015 Dover Saddlery, Inc. (NasdaqCM:DOVR) SEED Venture Finance, RBF Capital, others Webster Capital P

4/13/2015 WASH Multifamily Laundry Systems, LLC CHS Capital EQT Partners AB P

4/13/2015 Turner Hardware, Inc. - Westlake Hardware, Inc.

4/10/2015 Hand and Stone Massage Spa, Inc. - Levine Leichtman Capital Partners P

4/9/2015 Kitchen & Bath Design Studio, LLC - Markraft Cabinets, Inc.

4/8/2015 Elvex Corporation - Delta Plus Group (ENXTPA:DLTA)

4/8/2015 Car Brite, Eagle One, & private label products Valvoline International, Inc. Highlander Partners, L.P. P

4/8/2015 Mina Pharmacy LTC LLC - Longs Drug Stores, L.L.C.

4/8/2015 Carolina Manufacturing, LLC - Springs Creative Products Group, LLC

4/8/2015 Spence Diamonds Ltd. - Lion Capital LLP; IVEST Consumer Partners P

4/8/2015 New Energy, Inc. - Hillsdale Furniture, LLC

4/6/2015 American Recreation Products, Inc. Sun Capital Partners; Kellwood Company Exxel Outdoors, Inc. P

4/6/2015 Whatcom Farmers Coop. - CHS, Inc.

4/5/2015 AddiRae&Ives LLC - Trollingers Florists, Inc.

4/2/2015 Obsession Archery, Inc. - Arcus Hunting, LLC

4/2/2015 American Boat Brokers, Inc. - OneWater Marine Holdings, LLC

4/2/2015 Levy & Son - Service Experts Heating & Air Conditioning

4/2/2015 Nuheat Industries Ltd. Fulcrum Capital Partners Inc. Pentair plc (NYSE:PNR) P

4/1/2015 The Jessica Simpson Collection With You, Inc.; Corny Dog, Inc. Sequential Brands Group, Inc.

4/1/2015 Celtic Paper, LLC - NPS Corp

4/1/2015 54Studios Entertainment, Inc. - The Watermill Group

Tim AlexanderManaging [email protected]+1 (612) 359-2716

John Neuner IVManaging [email protected]+1 (804) 915-0125

Glenn GurtcheffManaging [email protected]+1 (612) 359-2702

Brent [email protected]+1 (804) 915-0183

Corey [email protected]+1 (804) 932-1342

Brant [email protected]+1 (612) 359-2709

Ryan [email protected]+1 (415) 217-3409

Chip DugginsVice [email protected]+1 (804) 932-1340

Ryan FreemanVice [email protected]+1 (612) 359-2703

Matt ConatyVice [email protected]+1 (415) 217-3423

16












Energy, Power& Infrastructure

IndustrialsHealthcare & Life Sciences

Transportation & Logistics

Aerospace, Defense & Government

Services

Business Services

Building Products & Materials

Technology, Media & Telecom

Specialty Distribution

Consumer

PAGE |

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17

CONSUMER AND RETAIL


Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities.Our clients benefit from our deep-sector experience, integrated industry intelligence andcollaboration across the firm, and our commitment to learning what makes them unique. For moreinformation, visit our website at www.harriswilliams.com/industries.

OUR FIRM

PAGE |

HARRIS WILLIAMS & CO.

18

SOURCES

S&P Capital IQ.

Thomson Financial.

Reuters.

S&P Capital IQ LCD.

Harris Williams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS.

The information and views contained in this report were prepared by Harris Williams & Co. (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, HarrisWilliams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.

Copyright© 2015 Harris Williams & Co., all rights reserved.

CONSUMER AND RETAIL


DISCLOSURES

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consumer & retail industry update - october 2015

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